Lantronix Inc (LTRX)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
$5.220.00%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
Warn: Primary pillar under pressure — EPS growth to at least $0.28 in fiscal 2027: EPS 0.04 vs target 0.28.
Lantronix is growing drone revenue to $14 million in fiscal 2026. Q4 revenue is guided between $29 million and $33 million. The company is advancing AI threat detection partnerships. These show progress in new growth areas.
Lantronix is loss-making with a high PE of 107.2. Revenue growth estimates have been revised down recently. The stock is down 36.6% from its high. These raise doubts about durable recovery.
The price is about 7% above our fair value near $5. Analysts expect 17% revenue growth. Our view is cautious given recent downward estimate revisions and soft guidance.
Breaks if: drone revenue fails to reach $10 million in fiscal 2026
Management has increased the fiscal 2026 drone revenue outlook to a range of $10 million to $14 million.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation. The company is currently loss-making, but it has identified growth areas in unmanned systems and drones, which management is prioritizing for future revenue growth.
The current valuation suggests that the market views LTRX as relatively cheap compared to its peers. However, there is an expectations gap, indicating that investors may anticipate further challenges ahead.
Management has shown some success in meeting revenue targets, particularly in the drone segment. However, the overall financial performance has been neutral, and there is a near-term risk of missing future guidance, especially given the company's smaller size.
The long-term thesis hinges on the company's ability to execute on its growth priorities in unmanned systems and drones. Additionally, external factors such as Federal Reserve interest rate decisions and performance of sector leaders will play a crucial role in shaping LTRX's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings beat and revenue guidance support the thesis. However, a sharp drop in the stock price may indicate a repricing of the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: EPS falls below $0.28 in fiscal 2027
Breaks if: revenue falls below $29 million in Q4 FY2026
Breaks if: unmanned systems revenue share falls below 15% in fiscal 2027
In the next 1 to 3 years, LTRX's performance will depend on its execution and external market conditions. Not investment advice.